It’s not the first time we mention how climate weather is affecting Miami’s landscape. In our article “Miami’s great initiatives to combat climate change” we explained how Miami’s local government is developing new ways to reduce the long-term risk of flooding and stabilize the region’s economy. This time I wanted to explore a little deeper one innovative development that is reducing the flooding risk and is creating a cool trend at the same time!
Tag Archives: properties
In the past, Miami’s developments were strictly targeted to buyers. Developers were building with the only purpose of selling as many units as possible, but we have seen in the past few years the beginning of a new trend. Miami is becoming more and more a city of renters and even more short term renters. This has pushed high-end units to change their strategy.
In a seasonal city as Miami, units are more attractive if they allow rentals, the shorter the better. For instance, new developments as the Panorama Tower on Brickell, unlikely its older peers, is now seeking to target leasing deals.
It is not a surprise that the Florida’s real estate market isn’t in its best shape today. The market has been facing different barriers that haven’t allowed it to grow as the some years before. In this week’s article I will explain some of the biggest problems that the industry is trying to bear.
1. Climate Change
We have all heard rumors saying that Miami is going to flood under water in a few years. Unfortunately, we have to say, somehow it is not false.
Are you planning to buy your first house and don’t know what price range to search for? Or are you only curious about how much is your price-to-income guideline? Well, this was the main questions the study of Hosing Markets and Finance made by the American Enterprise Institute’s Center (A.E.I.) was trying to solve.
If you were trying to find a magical equation that gave you the specific amount you can spend on buying a new home, I am sorry to tell you that it is a bit more difficult than that.
According to the public records compiled by Cranespotter, Miami’s real estate has suffered of a downshift that is just now starting to recover.
Out of 350 units over the $5 million dollars that are today on the market, only 6 units are sold per month. And out of this closed deals, 96% of them had to decrease their price for closing. However, the average percentage of reduction is only 5% under the listing price. Investors are just trying to get rid of their South Florida real estate assets.
Whoever tells you that the real estate market is like a roller coaster ride, is obviously not referring to Miami! The Miami Association of Realtor and the Multiple Listing Service (MLS) system, had announced the third quarter (Q3) 2018 sales report for Miami’s real-estate. It seems that nothing can stop their winning streak!
For the 27th consecutive quarter, Miami’s houses, condos and single family homes sales surged. Not even Hurricane Irma was able to slowdown the real estate sales growth in Miami.
It is not a secret that the down peak of the Miami Real Estate’s cycle is here. But even if it sounds like bad news, it is not at all!
Miami real estate has been following a sequence since the early industry boom in the 2000. This means that if we have arrived at the bottom line, it will have a fast bounce soon.
The whole industry has followed the same pattern, but the ultra-luxury houses’ had shown the most drastic impact.
According to Miami Association of Realtors, the foreign investment in South Florida climbed up to $7.1 billion dollars in 2017. That is a significant increase of approximately 15% compared to 2016 where the number was only $6.2 billion dollars. Unsurprisingly, most of the foreign buyers are coming from South America. In fact, the political and economic crisis in the area are pushing the wealthy to park their money into a safer environment.
According to the MLS, the home sales year-over-year has fell in May for the Miami-Dade and Broward counties. This is probably due to the increase of median price in properties in these areas. Palm Beach, however, did make an exception with a slight plunge of price which means that their home sales actually increased. Surprisingly, the market which saw an increase of closed sales in April dipped this month.
There is a huge confusion whether the western Venetian island belongs to Miami or the Miami Beach. After all, the zip code seems to apply to Miami Beach but the city belongs to Miami. The western venetian island (which makes up San Marco and Biscayne Island) seems to leaning towards Miami Beach. In fact, the residents themselves are taking action in their own hands by holding petition and collecting signature door-to-door.